NAHMA HUD Update: HUD Provides Post Conversion Processing Guide and CARES Act Funds Eligibility

8/3/2020

Dear NAHMA Members,

 

Below, please find an update from HUD’s Rental Assistance Demonstration (RAD), via their RADBlast. This update includes the publication of the Post-Conversion Processing Guide, which provide information to Managers, Owners and PHAs on how to process post-closing issues that may arise after RAD conversion, some of which require HUD approval. The Post-Conversion Processing Guide offers additional guidance on whom to contact within HUD and what information HUD needs to support the request. Properties that had previously converted through RAD to PBRA and PBV contracts in prior to calendar year 2020 may be eligible to receive funds made available through the CARES Act.

 

For more information on the Post-Conversion Processing Guide and to check eligibility for the CARES Act funds, please view the announcement below:

 

 
 

Post-Conversion Processing Guide and CARES Act Funds

 

Post-Conversion Processing Guide

HUD has posted to the RAD Resource Desk a new “Post-Conversion Approval Processing Guide,” located here. The purpose of this guide is to provide information to Owners and PHAs on how to process post-closing issues that may arise after RAD conversion, some of which require HUD approval. The document covers a variety of scenarios and offers guidance on whom to contact within HUD and what information HUD needs to support the request. This document will continue to be updated as new scenarios arise.

Post-Conversion CARES Act Funds

Properties that had previously converted through RAD to PBRA and PBV contracts in prior to calendar year 2020 may be eligible to receive funds made available through the CARES Act:

  • With respect to PBRA properties, on July 23, 2020, the Office of Housing published a Housing Notice, “Availability of Funds for COVID-19 Supplemental Payments (CSPs) for Properties Receiving Project-Based Rental Assistance under the Section 8, Section 202, or Section 811 Programs.”  The supplemental payments may cover additional cleaning and disinfecting, additional staff, face coverings, and other expenses to help keep properties safe for residents. The Housing Notice allows owners to submit payment requests for expenses incurred between March 27, 2020 and July 31, 2020. Property owners and management agents should contact their assigned HUD Account Executive or Contract Administrator with any questions about property eligibility for a CSP. Please note that requests are due to HUD or the Contract Administrator by August 5, 2020.  Please note that the Office of Housing has previously made funding available to PBRA properties to help offset decreased tenant rent payments resulting from reduced tenant income, as well as increases in vacancy payment claims that may occur due to COVID-19 related delays in moving-in new tenants.
  • The Office of Public and Indian Housing (PIH) has published Notices PIH-2020-08 and PIH-2020-18, which address HUD’s allocation methodology for the administrative fee portion of the CARES Act appropriation and establishes new eligible activities to prevent, prepare for, or respond to coronavirus that may be funded with these supplemental administrative fee amounts. PIH has also published PIH- 2020-17, which describe HUD’s allocation methodology for the HAP portion of the CARES Act appropriation and the PHA eligibility and application submission requirements.

Finally, HUD will provide forthcoming guidance regarding the availability of Operating Fund CARES Act funds for public housing properties that have converted or that will convert in Calendar Year 2020 and that are still supported through public housing appropriations.

Thanks!

-The RAD Team